Who Has to Pay This Tax?
This tax must be paid by every utility and vendor of utility services doing business in New York City.
The basic utility tax rate is 2.35% of gross income or gross operating income. However, different rates apply to bus companies and railroads, as shown below:
2.35% of gross income
Omnibus operators subject to NYS Department of Public Service supervision
1.17% of gross income
3.52% of gross income
Vendors of utility services
2.35% of gross operating income
Omnibus operators who are not subject to NYS Dept. of Public Service supervision
1.17% of gross operating income
Limited fare omnibus commuter service
.10% of gross income
Limited Fare omnibuses that provide other services
1.17% of gross income
Filing Information & Forms
Utility services vendors must pay the UTX and the General Corporation Tax (GCT) or Unincorporated Business Tax (UBT). They are permitted to reduce their business income for GCT by the ratio of gross operating income subject to UTX to total gross operating income.
- You may request within three years from the time you filed the Utility Tax return or two years from the time the tax was paid.
- The interest rate on underpayments is the Federal short-term rate plus 7%.
- The default rate for underpayments is 7.5%..
Forms and Reports
Returns are due monthly, by the 25 of each month, covering gross income or gross operating income for the prior calendar month.
Semiannual filings are due on July 25 and January 25 and are permitted if the prior year's tax liability was less than $100,000.
Frequently Asked Questions
Do landlords reselling electricity have to report these receipts on the UTX return?
No. The Utility bills the landlord for the tax and the landlord pays the tax amount to the Utility.
Does a landlord still have to file Form NYC-UXS if none of his gross income is subject to Utility tax?
No. However, we can request that you file a return for informational purposes.
Are most Utility Tax returns filed monthly?
Yes. In general, you need to file Utility Tax returns monthly. However, if your utility tax liability is less than $100,000 for the prior calendar year, you can file your returns for the subsequent year semi-annually.
Title 11, Chapter 11 Administrative Code, Enabling Act: Tax Law Section 1201(a) New York City Administrative Code §11-1101(6)